Layer 1 on Ethereum Market Research Center

PeerDAS: Ethereum’s Data Availability Breakthrough – EMRC

Thu, 29 May 2025 23:00:15 +0000

PeerDAS (Peer-to-Peer Data Availability Sampling) represents a major advancement in Ethereum’s ongoing scalability roadmap. It enables decentralized nodes, including lightweight clients, to verify that block data is available without downloading the entire dataset. This innovation addresses one of Ethereum’s most pressing bottlenecks: scalable and secure data availability. As Ethereum scales through rollups and Layer 2s, PeerDAS provides a trustless and bandwidth-efficient mechanism to ensure that the data behind each block can be retrieved by the network. PeerDAS sets the stage for full Danksharding and transforms Ethereum into a truly modular blockchain, strengthening its competitiveness against high-throughput monolithic chains like Solana and Sui.

The Evolving Relationship Between Ethereum and Its Layer-2s – Coin Metrics

Tue, 08 Apr 2025 03:46:02 +0000

Author Tanay Ved via Coin Metrics

*A data-driven look at how Ethereum’s Layer-2 growth is reshaping network economics and ETH’s value accrual.
*Ethereum’s shift toward a Layer-2-centric scaling model has expanded its ecosystem but reduced mainnet transaction demand, altering its economic dynamics. The Dencun upgrade introduced blobspace, significantly lowering L2 settlement costs and enabling highly profitable rollups like Base, which sparked debate over whether L2s benefit or extract value from Ethereum. As ETH’s returns increasingly hinge on network fundamentals—such as fees and token burn—its recent underperformance signals market unease over weakening value accrual. Upcoming upgrades like Pectra aim to double blob capacity, boost both L1 and L2 demand, and reestablish Ethereum’s long-term value proposition across its modular infrastructure.

Monthly Outlook: Expectations on Ethereum

Wed, 15 May 2024 03:19:00 +0000

Author David Han, Coinbase Institutional Research Analyst

Clarifying fundamental demand drivers for ether, and making sense of its narratives.

The recent approval of spot Bitcoin ETFs in the U.S. has strengthened Bitcoin’s identity as a store-of-value and cemented its role in the broader macroeconomic landscape. In contrast, Ethereum continues to face ongoing questions about its core positioning within the crypto ecosystem. Alternative Layer 1 blockchains such as Solana challenge Ethereum’s dominance as the primary destination for decentralized applications. Meanwhile, the rapid rise of Ethereum Layer 2s and the accompanying reduction in ETH burn have introduced uncertainty around ETH’s long-term value accrual model.